Quick take: Behind Wise and Deel’s new feature for global payroll

What happened? 

Last month, Deel, a payroll and HR platform, collaborated with Wise to create a feature that would make it easier for customers to transfer funds for payroll via Wise, using just their email address. They’re also now able to fund payroll transfers with 19 different currencies, giving customers more choice in the currencies they prefer. 

Before this, Deel customers had to deal with a longer transfer process, including the schleppy steps of inserting information and waiting for it to get through.

“So, rather than copying and pasting a range of information in various fields including an account number, routing number, and account type, Deel customers can now use one simple field to input Deel’s unique email address, and the funds will land in the right place,” said Steve Naude, head of product, Wise Platform.

Why does it matter?

As of today, Wise is live with over 50 banks and businesses to facilitate cross-border payments.

A few days ago, the company announced it had almost tripled its profits in the past six months, as more customers turned to the fintech to move their money cross-border. The firm announced it had moved £51 billion for its customers in the six months leading up to September 30 – 49% more than the total amount sent during the same period last year. 

“A growing focus on payroll solutions is in part down to a shift in how businesses operate. Small businesses around the world — and in the US — are increasingly looking at taking their operations global,” said Naude. “That includes everything from sourcing talent abroad, providing employees with the ability to work from anywhere in the world, and ensuring customers can purchase goods or services no matter where they’re located.”

Big picture

As companies’ operations, workforce and plans become increasingly globalized, they’re looking for more flexible payment options. SWIFT, for example, saw sign-ups for its cross-border payments product SWIFT Go triple since its launch back in 2021.

In general, SMBs are increasingly turning to cross-border payment options to stay on top of things, according to a report by Mastercard. Around 80% of these establishments feel ‘comfortable using online cross-border solutions’, and that ‘digital cross-border payments platforms help improve their business efficiency.’

This trend means that SMB service providers and large banks need to shift their offerings to accommodate and better serve business needs, according to Naude. “As the workforce continues to become more global, it’s critical that providers can offer simple and convenient solutions that allow businesses to pay employees in the currency that works best for them, no matter where they are based,” he said.